A preliminary review of Detroit's finances has determined that the city is not on target to fulfill promises to the state that allowed the city to avoid having an emergency manager appointed to oversee it, the state Treasury Department said Friday.
The review started Tuesday "has found that a serious financial problem exists in the city," Treasury spokesman Terry Stanton said in a news release. The state will likely appoint a review team to take a closer look at the city's books, he said.
That could lead to the appointment of an emergency manager and state oversight of the city under the state's current emergency manager law. The Legislature passed revised emergency manager legislation this week, but it would have no bearing on Detroit's situation because Gov. Rick Snyder hasn't signed it and if he does, it wouldn't go into effect until March, Stanton said.
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